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Roadshow, UBS Nordic Banking Conference Jan Lidén

Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.

Roadshow, UBS Nordic Banking Conference Jan Lidén

2.
(2)
Continued solid results in Q2
• Continued solid results in all
business areas
– Net profit for the period Jan-Jun
increased by 8 percent to
SEK 6 504m (6 022)
• Conversion to covered bonds on
21 April – decreased spreads,
increased liquidity and facilitated
funding
• New capital adequacy objective
for full Basel 2 – Tier 1 capital
ratio is to be 8.5-9.0 percent
• Credit quality remains good and in
line with expectations
• The macro environment in the
Baltic states has deteriorated
compared with expectations in
Q1, affected by a weaker
European economy
• Net gains and losses on financial
items were positively affected by
unrealized valuation effects –
valuation volatility expected to
decrease as from Q3 2008.

7.
(7)
Baltic macro outlook
• Fall in activity will be shallower and recovery faster than benchmark’s (busts in
industrial countries)
– Less institutional rigidities
– Fiscal and monetary policies likely to be less pro-cyclical, support from EU funds
– Low actual level of leverage in the economy
• Household consumption will contract
• Investment will contract
• Imports will contract due to shrinking consumption and investment
• Recovery in late 2009–2010 depends on global recovery in H2 2009 Export
development outlook
– Producer price inflation of exported goods has swiftly decreased
– By 2009 energy prices will have converged to the levels of western Europe
– Companies are increasingly investing to improve their productivity thus improving their
resistance to negative shocks
• Real estate market will lag behind overall recovery as consumers will be unsure
about the start of recovery and will try to rebuild their depleted savings first

8.
(8)
Summary – economy and banking sector
• Baltic economies have strong long term growth potential, e.g.
– Average labour productivity being at 60-70% of the EU 27 average provides
ample opportunities for productivity convergence
– EU funds are expected to amount to ca 2% of annual GDP till 2013, providing
support to real convergence
– Only 15-25% of households have mortgages
– Good institutional framework, e.g. in the World Bank’s Doing Business 2008
index Latvia ranked 22nd among 175 countries
• Significant restructuring of the economies and the banking sector is
expected - different risk assessment, different pricing and labour lay-offs
– Successful return to sustainable growth path and stability achieved only if
successful structural reforms are implemented to boost productivity

15.
(15)
New capital adequacy target – mid-term
• New target:
The capital ratios will at least meet the level that at any given time is
considered appropriate to maintain sustainable financial stability and
develop operations. Considering full effect of Basel 2, the Tier 1 capital ratio
is to be 8.5-9.0%.
• Swedbank is currently well capitalized given the current risk profile and the
risk development under an adverse scenario
• Swedbank is currently capitalized in line with European peers in full Basel 2
• In relative terms Swedbank has a low risk business model with a
predominance of Swedish mortgage business and low counterparty risks,
which indicates a lower than average Tier 1 capital ratio. Growing presence
in Eastern Europe indicates higher Tier 1 capital ratio